White House Backs Down on $250K Government Purchase Card Limit

Today the White House announced that it is returning the government purchase card limit from $250,000 (or $15,000 for contingency operations) to $2,500, stating "the higher purchase limits are no longer needed and will be used only in 'exceptional circumstances' to guard against fraud and abuse."

Contracting watchdogs who raised concerns included the Project On Government Oversight, House Government Reform Ranking Minority Member Henry Waxman (D-CA), Senate Homeland Security and Governmental Affairs Chairman Susan Collins, and Senators Charles Grassley and Joseph Lieberman.

"Today's announcement means more government spending will reach the survivors of Hurricane Katrina rather than being wasted. Lifting the government purchase card limit to $250,000 was ludicrous given that the cards were already the target of numerous fraud investigations by the FBI, Inspectors General, and the Government Accountability Office," said Danielle Brian, Executive Director, Project On Government Oversight.